As a business owner, customer acquisition cost is something that’s always hanging on your head. Ideally, businesses would want to keep it as little as possible and at the same time ensure that they have a high customer retention rate.
According to Invesp, a consultation firm, 44% of businesses focus on customer acquisition as compared to 18% that focus on customer retention.
This is more true for businesses that have a subscription-led business model. Businesses that rely on customers subscribing to their products or services should have an equal focus on both these metrics.
To ensure you maintain a healthy balance between customer acquisition and customer retention, you should make it easier for your customers to pay for subscriptions. One way to decrease customer acquisition cost and retain existing customers is by automating digital payments with Paytm Subscriptions.
Automate payments with Paytm Subscriptions
Very often customers don’t remember to pay for their subscription every month, quarter, or year. This leads to businesses dealing with a lot of late payment cases even if they send reminders. However, the worst is when customers unsubscribe due to the hassle they have to go through to pay every month.
More often than not, businesses with a subscription model suffer from high customer churn rate leading to a rise in customer acquisition cost as they have to invest money and effort in bringing dropped out customers.
With Paytm Subscriptions, businesses can reduce their customer acquisition cost as well as retain existing customers.
What is Paytm Subscriptions?
Paytm Subscriptions is a simple and straightforward way for businesses to automate payments for their subscribers. Paytm Subscriptions enables businesses to send timely reminders to customers with a payment link making it easier for customers to pay.
It not only ensures businesses receive payment on time it also reduces the customer dropout rate.
How does Paytm Subscriptions work?
Businesses can use Paytm Subscriptions to automatically receive recurring payments from their customers based on a pre-arranged payment schedule.
Once consumers give a one-time consent to pay for the services or products they consume on a regular basis, you can start receiving payment without any explicit payment action at customers’ end.
After you activate Paytm Subscriptions on their website or app, here is how the process works for customers:
- Create subscription: The product page shows customers different subscription plans to choose from. It will have details of the amount to be paid and the time intervals like weekly, monthly, or yearly. Here, customers can either choose to pay automatically by giving a one-time consent for auto-debit, or go for manual payment via Paytm Subscriptions Link.
- Activate subscription: Once the subscription is created, customers get to choose their convenient digital payment modes such as debit or credit card, net banking, Paytm wallet, and the most popular UPI autopay. Paytm Subscriptions asks the customer for a one-time consent to automate the payment at a fixed recurring interval.
- Collect payment: Based on how the customer has chosen to pay, you can collect payments in two ways using Paytm Subscriptions.
One is ‘Automatic Collect’, which would automatically charge the customer on the due date of payment. If the customer chose to pay manually, businesses need to send Paytm Subscriptions Link to the customer close to the due date of payment.
Benefits of Paytm Subscriptions
Paytm Subscriptions enables businesses to simplify recurring payments for their subscribers, which results in higher customer retention and fewer late payments. In addition to these benefits, Paytm Subscriptions have a deeper impact on businesses.
3 benefits of using Paytm Subscriptions:
- High success rate: Businesses trust Paytm Subscriptions when it comes to successfully processing payments. In case of a rare payment failure, our smart retry feature automatically tries to process the payment again. Additionally, the intelligent routing feature proactively routes the payment to the best performing gateway, ensuring the payment goes through.
- Support for all business models: Paytm Subscriptions is designed to support any and all kinds of subscription models. Whether the business wants to offer customers a trial period and automatically accept payments once the limited trial period is over, or send custom subscription payment links based on the usage (eg: internet bill based on consumption), Paytm Subscriptions supports it all.
- No-hassle payment for customers: With Payment Subscriptions, businesses get to simplify recurring payments for their customers. Customers no longer have to remember the due date of payment to risk cancellation of their subscription or pay late fee. Automating recurring payments also means you don’t have to worry about late payments or sending out reminders as well as keep a check on customer churn rate.
Accept money via multiple payment modes
As one of the leading digital payment companies, Paytm Payment Gateway provides users with an array of payment options. Depending on their comfort, customers can choose to pay via following payment methods:
- UPI AutoPay: This payment mode is quite versatile and convenient as the RBI recently increased the per transaction limit to Rs 15,000. Customers can create an e-mandate using UPI AutoPay for their recurring payments. They simply need to provide their UPI ID and approve the payment by entering the 4-digit UPI PIN.
- e-Nach mandate: e-Nach is a popular payment mode by NPCI that automates online payments for businesses and users. Now businesses can let users pay for their subscriptions by creating a one-time e-Nach mandate via Paytm Subscriptions. Once the mandate is created, businesses can start accepting payments on a regular interval.
- Debit or credit cards: On the payment page, customers can pay via any debit or credit card by entering their card details and one time password to authenticate the payment. Once the payment is processed, both you and your users get a confirmation message.
- Paytm Wallet: Paying via Paytm Wallet is one of the easiest ways to automate payments. Since over half a billion users use Paytm Wallet it has a wider reach that cuts through smaller cities and towns. Businesses can expand their reach to smaller cities by simplifying subscription payments via Paytm Wallet.
Frequently Asked Questions
- What kind of businesses can use Paytm Subscriptions?
Answer: Any business that has a subscription model can use Paytm Subscriptions to simplify the payment process for users.
- How difficult is it to integrate Paytm Subscriptions with my website or app?
Answer: Paytm provides API keys and documentation required for developers to integrate Paytm Subscriptions with the website and app.
- Will Paytm auto-deduct customers’ accounts when the due date of payment arrives?
Answer: No. You will need to trigger the Renew Subscription API with the subscription ID provided at the subscription creation time. After that, the customer gets debited, and we share an acknowledgement with you. This renewal trigger is to be sent by the merchant, and the customer needs no intervention in the renewal process.
- Can I modify an existing subscription?
Answer: You have the option to cancel the existing subscription and create a new subscription with the required features at ease. Customers have the flexibility to cancel their subscription payments from the merchant app or the Paytm app if the customer is logged into the Paytm app during the time of subscription creation.
One sure shot way for businesses to retain existing customers and reduce the customer acquisition cost is by making it easier for customers to make recurring payments. Automating payments for subscriptions also gives businesses a clear view of their expected revenue.